Neptune eyes $11m Asia deal

Flush with cash after a $50 million capital raising last month, Neptune Marine is believed to be poised to buy a Singapore-based oil and gas services company.

It is understood Neptune has agreed to pay about $11 million for Core IRM, a group which works in a similar repair and maintenance field, operating in the Asia Pacific region with a presence in West Africa and the Middle East.

Core IRM would be the second company earmarked for purchase since Neptune announced its institutional placement. Neptune hinted the money would be used for several acquisitions, including an unidentified US company on which it was doing due diligence.

Neptune has also been establishing a foothold in Brazil where chief executive Christian Lange said he expected the "burgeoning" oil and gas sector to provide further opportunity for expansion.

Neptune shares have nearly doubled from a low of 26.5¢ last October, but fell 0.5¢ to 50.5¢ yesterday.